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Your team installed a heat exchanger at your plant for $10,000 ten years ago. Unfortunately,maintenance costs have been increasing and are estimated the following for
Your team installed a heat exchanger at your plant for $10,000 ten years ago. Unfortunately,maintenance costs have been increasing and are estimated the following for the next 5 years: $1,000 with $200 additional costs every year. If replaced, it will cost $1,500 to remove from service. You found a better heat exchanger that would have an equivalent annual cost of $900. Your companys MARR is 20%. What would your recommendation be?
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